Inventory Borrowing Base

Inventory Borrowing Base. At any date of the determination thereof, an amount equal to the sum of (i) the lower of (a) sixty percent (60%) of the value of Client's Eligible Inventory at such date, calculated on the basis of lower of cost or market with cost calculated on a first-in, first-out basis, or (b) ninety percent (90%) of the net orderly liquidation value of Client's Eligible Inventory at such date, as determined by Factor, plus (ii) sixty percent of the value of Client's Eligible L/C Inventory at such date,... calculated on the basis of lower of cost or market with cost calculated on a first-in, first-out basis, plus (iii) thirty percent (30%) of the value of certain finished goods Slow Moving Inventory (as selected by Factor), which, but for the fact that such inventory has had no sales during the preceding nine (9) months, satisfies all other requirements of Eligible Inventory, with such percentage to be reduced by ten percent (10%) per month on each monthly anniversary of the Effective Date until eliminated, and with the value of such finished goods Inventory to be calculated on the basis of lower of cost or market with cost calculated on a first-in, first-out basis, and less (iv) reserves which Factor, in its discretion, determines should be established from time to time with respect to such matters, events, conditions or contingencies. View More